Ex-Im Bank’s $1.5 billion financing helps Mexico’s oil company

Friday, August 30, 2013

The U.S. Export-Import Bank has authorized $1.5 billion in export financing for a pair of transactions to support the export of U.S. goods and services to Petroleos Mexicanos (Pemex), Mexico's national oil and gas company.
For the second time, Pemex will issue Ex-Im Bank-guaranteed bonds in the capital markets to fund the transactions. In the event the funding cost is prohibitive, Pemex may exercise an option to seek Ex-Im Bank direct loans priced at Commercial Interest Reference Rates, the bank said.
Ex-Im Bank said its financing will support about 6,800 U.S. jobs across about 10 states. The procurement includes oil and gas field drilling services, drilling platforms, equipment rentals, pumps, well-completion services, associated spare parts and chemicals, geophysical services and safety equipment.
For example, the bank said Detcon Inc., a small business that will benefit from the transaction, designs and manufactures a wide range of industrial grade fixed gas detectors, control systems, pipeline analyzers, and wireless technology. The company, which is headquartered in The Woodlands, Texas, employs about 90 people.
Since 1998, Ex-Im Bank has approved about $13.5 billion in financing to support Pemex's activities.